01-28-2009, 09:43 PM | #1 |
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Has CFC been buying more deals since the $1.5 Billion infusion?
I just noticed that it's been almost two weeks since word leaked out that CFC would receive $1.5 Billion in TARP money.
Chrysler's press releases stated that they'd be using the money to support their dealers and finance vehicle sales. Jim Press even suggested that there would be money available for customers with credit scores from 621+. Are they living up to their word and buying more deals? Are they supporting the 621+ customer or are the rates still too high? |
01-29-2009, 08:27 AM | #2 |
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we haven't sent them a deal in over two months, and they haven't approved anything we have sent them, although we don't even send them much because you know the outcome before you send it in. this month, all turn downs or conditioned. i talked to my DRM tuesday and he said "anyday now" they will start buying. i remember a post somewhere else on this site that suggested they won't start buying until the TARP deadline is almost here and then they'll start buying everthing and it'll be ugly paper and an ugly situation. only time will tell
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01-29-2009, 08:42 AM | #3 | |
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I laughed when I read the "any day now" quote. If they're not careful they're going to be out of business by the time they decide to get back in business. |
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01-29-2009, 08:48 AM | #4 |
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that may be the exact quote i gave my DRM
funny thing is, he was calling to see if i remebered how to use AutOrigination the deals i was sending. i assured him that if they bought a deal that i could remeber how to process it. but maybe that was a sign that they may actually buy deals soon. |
01-29-2009, 09:25 AM | #5 |
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Well I have a deal in to them right now, I will update you with the decision...
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01-29-2009, 09:51 AM | #6 |
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They are a joke.
Got into it with one of our buyers last week. Wanted to pre-stip a radiologist who make 500k a year for income and a full and complete credit app. Had five SOLVENT banks give me approvals without wanting anything, including the stingiest bank we have - US BANK. Just wanted to give CFC a shot b/c you can earn 100 % reserve if you only mark it up a point. I told the buyer, we had our best december in a decade without them and we'll be just fine not using them now. |
01-30-2009, 04:45 PM | #7 | |
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Uh....lemme' see here.....(checking Route1 on other screen - flipping between 4 stores) nope, no, nuh uh, turn down, condition (821 with DTI a tick high), another decline (jeeze they love those red arrows ), nada, zilch, not that one either. X - the short answer to your question - no. |
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01-30-2009, 05:20 PM | #8 |
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What a roller coaster ride...This customer purchased a used PT from me 4 months ago and had to put only $500 down. He wants another used PT for his business...CFC turned me down because they were not comfortable with a 3rd car...it is tough enough to get a customer in here and then have to fight/argue with CFC...I told them I am a Chrysler dealer and I finance/floor/ with CFC, and I only needed a $9,000 loan. They send me to S-tier and find out the customer has a securtiy lock on his credit, the wrong phone number is on the credit report and was denied. I then call back CFC and get the branch manager who cut the deal back to 48 months with $2,700 down, and now my loyal customer is thinking about it. There are a lot more details than this, but I would make a long story longer...bottom line is it is getting really difficult to get a loan done.....
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01-31-2009, 12:02 AM | #9 | |
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It's interesting that the GM dealers reported the same thing with GMAC when they got their TARP money. Given the ties to Cerberus I guess we shouldn't be surprised. |
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01-31-2009, 12:06 AM | #10 | |
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It seems like there's a disconnect between what they're saying and what they're doing.... |
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01-31-2009, 07:23 AM | #11 |
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Chrysler Sales & Chrysler Credit haven't been on the same page for years! You'd think todays critical environment would mend this seperation... not!
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01-31-2009, 07:47 AM | #12 |
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They are doing an enormous amount of painfully slow verification processes. I just finished out Saturday morning sales meeting by giving the sales dept a re-education on filling out a credit app. It was a lengthy presentation...
In a way, I do think this is good. Years and years ago, before all ya had to do was prove your BK was discharged, things like verifying home phone numbers and calling a job # to check and see if the biz actually existed were the norm and were smart. I had a customer comment yesterday about how it use to take 45 mins to buy a car and now things are changing. I've mostly had positive reaction from customers about the lengthy and careful steps CFC is taking. I think it is wise, but it will be painful for some until the new ways become the norm. Think of where we might be TODAY has everyone operated someone close to how they do now. Its really all in how you spin to customers. If you go up to them and say, "sorry for this unnecessary delay, this is ridiculous, I don't know why they have to do all this!!!!" or "we appreciate your patience, but these really are good measures on behalf of CFC to make good use of their loan money from taxpayers...gosh knows the money of taxpayers GIVEN to wallstreet last fall sure got frittered away!" Just take a deep breath, tell everyone inlcuding managers and salespeople to SLOW DOWN. |
01-31-2009, 09:43 AM | #13 |
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I like to remind them that alot of the delay and double checking is being done to protect their credit security from fraud.
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01-31-2009, 01:17 PM | #14 |
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I, like everyone else, would really like to know where my tax dollars that got diverted to CFC are going. I was under the misunderstanding that TARP was going to troubled banks to reignite the credit market and help make loans possible.
One of my stores submitted a deal today to CFC; a deal that made sense on a used unit. The response from the buyer, "these aren't the kind of people that we want on our books." I almost bit thru the pen in my mouth when the F&I called me on that. What "type" are they looking for? From what I could see, their $6000 / month income probably means they pay a pretty penny in federal tax dollars. The same tax dollars that made their way to CFC's pockets when they went to DC with their upturned hat looking for a handout. GRRRRRRRrrrrrrrrrrrrr |
01-31-2009, 02:01 PM | #15 | |
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From conversations w/our CF rep (good guy) he's pretty much told us straight up... NEW is what CF wants because NEW is what Chrycerberus needs and 1.5B over 10 weeks just isn't enough $$$ to spend on both. |
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